The ultra-quick fashion behemoth Shien has grown from being barely known to older consumers to become one of the largest fast fashion merchants in the world in only ten years. The Chinese-founded company, which also offers a wide variety of home and cosmetic items, more than quadrupled its profits to over $2 billion in the previous year, surpassing the earnings of the UK’s Primark and Next as well as the Swedish fashion giant H&M.

It currently supplies to clients in 150 different nations.

The firm is still mired in controversy over its working conditions and environmental effect, including claims of forced labour in its supply chain, even as it considers listing its shares on the London Stock Exchange.

Pronounce it “she-in,” Shein was founded in 2008 by businessman Xu Yangtian in China, where it began as an online retailer of bridal gowns.

Since then, it has expanded into a massive worldwide company best recognised for selling trendy apparel, mostly to Gen Z consumers.

the majority of the appeal? The cost.

Shein outsells competitors like Zara and Boohoo with its low average price of £7.90 and its 600,000+ goods available for purchase on its website at any given moment.

Additionally, it has acquired rivals such as Missguided, and Xu Yangtian—who doesn’t often do interviews—is reportedly among the wealthiest men in China.

The real turning moment for the brand, in the opinion of analysts at GlobalData’s Louise Déglise-Favre, happened during the pandemic, when online shopping became popular and Shein’s sales surged.

The business has also made great use of social media, marketing their clothing on Instagram and TikTok with the use of famous influencers and college students.

Déglise-Favre claims that “the brand’s success coincided with a boom in TikTok usage in Europe and the US.” “The Chinese social media platform participated greatly in spreading awareness about the Shein’s ultra-affordable proposition.”

It pulls a lot of organically occurring user-generated stuff, but it also draws a lot of customers, thanks to pop superstars like Rita Ora and Katy Perry performing at its virtual concerts.

It’s likely that you have browsed past so-called “haul” videos on the internet, when young ladies are seen opening their recently delivered shipments and candidly reviewing crop tops, outfits, and beauty blenders.

Shein’s business strategy is comparable to Amazon’s in that it manufactures its clothing in collaboration with thousands of outside vendors, many of whom are located in China, Brazil, and Turkey, and then distributes them from enormous, centralised warehouses.

Additionally, it has expedited the “test and repeat” strategy popularised by other fast fashion behemoths, such as Inditex, the owner of Zara and H&M.

As a result, Shein suppliers create products in small batches (100–200 pieces) and subsequently increase production of any popular design.

Some stores would need months to produce a new item that the brand can produce in only 25 days.

Additionally, it employs “gamification” techniques to increase user engagement on its shopping app, which is downloaded by millions of users globally.

For recommending friends, discussing products on social media, and regularly checking in, users may earn points and discounts.

“This incentivizes users to continue engaging with the app and making purchases by rewarding them for repeating such actions,” explains Vilma Todri, an associate professor at Emory University’s Goizueta Business School in the US.

However, Shein has found it difficult to overcome the criticism directed at its business methods.

And now that the Chinese company is considering listing its shares in London in a public offering that might fetch it an estimated $50 billion, those worries are once again front and centre.

Concerns have been raised over the waste and environmental effects of mass making inexpensive clothing.

A group of US congressmen also demanded last year that Shein look into allegations that some of the clothing it sells is made in China using Uyghur slave labour.

Shein said to the BBC at the time, “We have zero tolerance for forced labour.”

The company claims that all of its suppliers are required to sign up to a code of conduct, and it has pledged to look into such matters.

In an effort to strengthen its environmental credentials, it has also introduced a resale marketplace for customers in the US and France. It claims that by creating clothing in smaller quantities, very little material is wasted.

Shein reportedly had ambitions to offer its shares in the US at first, but political issues caused these plans to fall through.

There are already concerns in the UK about it, with some stating that concerns about governance, social, and environmental norms may deter investment.

However, others claim that having such a large listing in London might be rather advantageous. It may increase awareness of the business’s activities and strengthen the UK economy, especially because the London Stock Exchange has been having trouble drawing in rapidly expanding businesses.

(Adapted from BBC.com)